Our Take On Royal Boskalis Westminster's (AMS:BOKA) CEO Salary

This article will reflect on the compensation paid to Peter A. Berdowski who has served as CEO of Royal Boskalis Westminster N.V. (AMS:BOKA) since 2006. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Royal Boskalis Westminster.

See our latest analysis for Royal Boskalis Westminster

How Does Total Compensation For Peter A. Berdowski Compare With Other Companies In The Industry?

At the time of writing, our data shows that Royal Boskalis Westminster N.V. has a market capitalization of €2.5b, and reported total annual CEO compensation of €1.9m for the year to December 2019. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €870k.

On comparing similar companies from the same industry with market caps ranging from €1.7b to €5.4b, we found that the median CEO total compensation was €2.1m. From this we gather that Peter A. Berdowski is paid around the median for CEOs in the industry. Furthermore, Peter A. Berdowski directly owns €1.9m worth of shares in the company.

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Royal Boskalis Westminster allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Royal Boskalis Westminster N.V.'s Growth

Royal Boskalis Westminster N.V.'s earnings per share (EPS) grew 60% per year over the last three years. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Royal Boskalis Westminster N.V. Been A Good Investment?

Given the total shareholder loss of 32% over three years, many shareholders in Royal Boskalis Westminster N.V. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Royal Boskalis Westminster N.V. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

Shareholders may want to check for free if Royal Boskalis Westminster insiders are buying or selling shares.

Important note: Royal Boskalis Westminster is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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